The Canadian dollar is under pressure

The Canadian dollar accelerated the decline against major competitors on the Bank of Canada meeting results, which left interest rates unchanged at 1.75%. The main driver of the decline in the Canadian dollar against the US dollar was the very soft rhetoric of the Bank of Canada, which focused on the risks of trade relations. Also, the Central Bank of Canada has increased the pressure on the Canadian dollar with modest expectations from inflation and economic growth.

Additional pressure on the USD/CAD pair is exerted by the widespread strengthening of the US dollar, which was caused by ambiguous sentiment in the market. Thus, the USD/CAD pair has strengthened rapidly, returning to an uptrend, after attempts of correction at the start of the week. At the same time, further strengthening of the pair is limited by overbought and resistance levels: 1.3380 and 1.3400.

USD/CAD H4 chart. Current price – 1.3370

Read also: “Fundamental analysis: the interest rate and its impact on exchange rates”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Will it be new oil quotas in OPEC?
2. Doji candlesticks on the FOREX market
3. Expectations from the NZD/USD pair at year’s end!

Current Investment ideas:

1. “3 reasons to buy  Cisco Systems Inc. shares”
2. “It’s time to hit the jackpot on the sale of McDonalds shares!”